Failure of IMF and World Bank Policies in Sub-Saharan Africa

4500 Words 18 Pages
Failure of IMF and World Bank Policies in Sub-Saharan Africa


Over the last several hundred years, Africa has been deprived of the peace that it so desperately needs. For over 400 years, Africa was subjected to the harsh trans-Atlantic slave trade. Europeans and Americans brutally uprooted millions of Africans and shipped them away. Torn away from their homes, Africans were inhumanely exploited for their labor. The slave trade had a devastating effect not only on those involved, but also on future generations to come. The exploitation of Africans continued even after slavery was abolished. A new form of slavery disguised as colonialism quickly took form as an institutionalized method of exploiting Africans. European
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In the following essay, I will show how the policies in place now are neither working but also making the situation worse. In order to solve the debt crisis in Africa, I propose the following three measures:

1) The Cancellation of all external debt
2) Investments in health, education, and infrastructure
3) New trade policies to fix the disparity in trade between African countries and
industrialized nations.

New methods need to be taken in order to at least curtail the region?s downward spiral. Cleary, the policies in place now undermine the economic development of African countries.

The IMF and World Bank

The IMF was established in 1945 by the United Nations to improve the health of the world economy. It was designed in order to avoid the catastrophic economic policies that had contributed to the Great Depression in the 1930s. The IMF is an international organization comprised of 184 member countries. It was established with the goal in mind of promoting international monetary cooperation in order to stimulate economic growth and provide temporary financial assistance to countries to help alleviate problems associated with debt. Acting as the central institution of the international monetary system, the IMF?s main objective is to prevent crises in the system by advising countries to implement reliable economic policies. It also provides funds that…